Coca-Cola CEO's pay package increases 30 percent

AP News
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Posted: Mar 10, 2011 11:40 AM
Coca-Cola CEO's pay package increases 30 percent

Coca-Cola Co.'s Chairman and CEO, Muhtar Kent, received compensation valued at $19.2 million in the 2010 fiscal year, 30 percent more than the year before, as his bonus and stock awards increased, according to an Associated Press analysis.

Kent has been CEO of the world's biggest drink maker since July 2008.

Coca-Cola maintained his base salary at $1.2 million. His performance-based cash bonus increased 18 percent to $6.5 million, according to a regulatory filing submitted Wednesday.

Coca-Cola did not grant any stock awards to its executives in 2009. This year, Kent received stock awards valued at $5.1 million. He also received options awards valued at $5.7 million at the time they were granted, down from $7.4 million worth of options granted in 2009.

Kent also received perks, such as personal drivers, use of the company aircraft and financial planning services, worth $737,848. That's 12 percent higher than the $659,274 in perks a year earlier.

Coca-Cola and its rivals have suffered falling soft drink sales in the U.S. in recent years and it continues to face volatile ingredient costs and an uncertain economy. The company, however, has expanded its product lines increasingly into water, juices and teas, increased its push in international markets and acquired its largest bottlers.

The company's net income surged 73 percent to $11.81 billion in the most recent fiscal year, and revenue rose 13 percent to $35.12.

Coca-Cola, based in Atlanta, is the world's biggest seller of drinks, with brands such as Coke, Sprite and Dasani bottled water.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonus, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with regulators.